I think this is great, and I'm glad to hear that there are people out there doing this kind of work.

The main thing you need to watch out for in this kind of situation is corruption of the news filtering process on the local level. It's much easier to successfully bribe/coerce/undermine a single individual running an independent newsletter like this than it is an entire newsroom. Editors are helpful for vetting sources, providing guidance on how to follow up on leads, etc.